Tue, Jan 17, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Global macro dominates hedge fund returns and asset raising, while strong performing convertible arb continues to see outflows - Dow Jones Credit Suisse Hedge Fund Index

Tuesday, October 26, 2010
Opalesque Industry Update - Currency fluctuations and rising gold prices helped drive much of the global macro gains during September, cites a newly released update from the team at Dow Jones Credit Suisse Hedge Fund Index. The strategy saw gains of +2.72% during the month (+9.3% YTD) and has also been a favorite for investors returning to the hedge fund markets.

The best performing global macro fund on the DJCSHFI logged gains of 27% during September.

“On a nominal basis, the Global Macro and Event Driven sectors [event driven rose 3.20% in September, +6.3% YTD] have experienced the highest asset flows year-to-date. In the third quarter, event driven surpassed all of the other sectors with $4bn in asset flows. Nevertheless, the Global Macro sector has far surpassed the others on a year-to-date basis with $11bn in inflows. This demonstrates the desire of investors to invest their assets in tactical strategies, which have historically been able to withstand more volatile market corrections.”

Convertible arbitrage
One strategy that is still struggling to gain back investor confidence in convertible arbitrage, which has thus far returned 7.5% this year, and that gained +47.3% during 2009. It is also the only strategy on the DJCSHFI that can claim positive returns for every month during 2010 for every manager listed in the index. So far this year the best performing convertible arbitrage fund listed on the index has returned 65.7% and the worst performing fund listed has been flat.

However, even with this strong showing during 2010, these managers continue to watch assets leave their space. Convertible arb saw outflows during 3Q2010 (although admittedly they have slowed from the previous quarter), as the industry in total saw net inflows of approximately $14bn. To note, the other two strategies that saw outflows during 3Q2010 were dedicated short bias and emerging markets.

There is some sense that convertible arb redemptions continue to be from funds that remain gated, and are only flowing back out to investors now. Investors also continue to be gun shy of the strategy, which was the second worst performer during the 2008 crisis (returning -32% that year).

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Southpoint Capital gains 3.8% in Q3, bringing year-to-date returns to 5.2%[more]

    From Valuewalk.com: Southpoint Capital Advisors, the $3 billion New York hedge fund founded by former employees of David Einhorn’s Greenlight Capital, added 3.8% net during the third quarter of 2016, bringing year-to-date returns to 5.2% and cumulative returns since inception (July 2004) of 237.4% a

  2. The Big Picture: The case for emerging market debt in 2017[more]

    Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

  3. Hedge funds gain across strategies in December, outperform MSCI to close at record index level in 2016[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted gains across all strategies in December to conclude 2016, with the HFRI Fund Weighted Composite Index (FWC) rising to a record index value level as oil prices surged, equities gained and U.S. interest rates increased into year end, accordin

  4. Performance - BlackRock's robot stock-pickers post record losses, Soros-backed fund Glen Point loses in first trading year, Regal Funds Management: Bleak year as returns in key funds plunge 25pc, Elm Ridge Capital up 25% in 2016[more]

    BlackRock's robot stock-pickers post record losses From Bloomberg.com: Like so many fund titans these days, Laurence D. Fink is betting on machines to turn around BlackRock Inc.'s beleaguered stock-picking business. Trouble is, they just might have made things worse. BlackRock

  5. Eurekahedge Hedge Fund Index up 1.01% in December (+4.48% YTD)[more]

    Hedge funds gained 1.01% during the month of December, with 2016 returns coming in at 4.48%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 2.38% in December with its 2016 returns coming in at 7.37%. North American equity markets traded higher in December as t